Pages

Thursday, December 4, 2008

* Five Dividend Stocks To Watch

Blue chip dividend stocks usually carry a premium. Often this premium is in excess of what I am willing to pay. With Monday's market slide followed by Tuesday and Wednesday's subsequent recovery, it appears that good stocks can fall into an after-Thanksgiving mark-down sale at anytime. Here are five stocks that I am watching closely, with their Risk Quality (RQ) rating and other information as of 12/1/2008:

I. Procter & Gamble Co. (PG )

RQ: A1

Yield: 2.49%

Buy Below: $59.70

12/1/2008 Close: $60.49

% Change since 12/31/2007: -17.6% ($73.42)

II. Wells Fargo & Company (WFC)

RQ: A2

Yield: 4.71%

Buy Below: $26.44

12/1/2008 Close: $23.41

% Change since 12/31/2007: -22.5% ($30.19)

III. Kimberly-Clark Corporation (KMB)

RQ: A2

Yield: 4.02%

Buy Below: $52.87

12/1/2008 Close: $55.02

% Change since 12/31/2007: -20.7% ($69.34)

IV. Progress Energy, Inc. (PGN)

RQ: A5

Yield: 6.20%

Buy Below: $36.95

12/1/2008 Close: $37.73

% Change since 12/31/2007: -22.1% ($48.43)

V. The Coca-Cola Company (KO)

RQ: A2

Yield: 3.24%

Buy Below: $45.35

12/1/2008 Close: $44.33

% Change since 12/31/2007: -27.8% ($61.37)

When the market is in a free-fall, it is important to concentrate on quality. Each of the above stocks has a RQ rating of A5 or better. Their share price has declined significantly less that the 44.1% decrease of S&P 500 as measured by VFINX ($135.15 down to $75.54). I suspect Monday was not the last after-Thanksgiving sale of 2008.

As always, you should perform your own research and reach your own conclusion before buying or selling an investment security.

Full Disclosure: As of this writing, I was long in VFINX, PG, PGN and KO

Important Information

Material presented on Dividend Growth Stocks is for informational and entertainment purposes only and is the opinion of the author and should NOT be relied on or taken as investing advice. The information and content should not be construed as a recommendation to invest or trade in any type of security. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Before acting on anything you read on this site, you must do your own research and you must come to your own conclusion which you will ultimately be responsible for, including any loss you may incur. [More]